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Jack Henry (JKHY) Partners NYDIG for Banno & JHA PayCenter

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Jack Henry & Associates (JKHY - Free Report) announced that it collaborated with NYDIG, a leading company providing bitcoin technology and financial services solutions to businesses.

Per the terms, the companies aim to help financial institutions make bitcoins easily accessible to their account holders and help customers improve their financial health.

On the back of Jack Henry’s Banno Digital Platform, customer and business account holders can seamlessly access NYDIG's buy-hold-sell features.

They can further leverage JKHY’s JHA PayCenter to facilitate payments to and from NYDIG with the help of the real-time payments network.

Following the recent partnership with NYDIG, Jack Henry is expected to gain momentum among financial institutions. This, in turn, is likely to contribute to its top-line growth in the days ahead.

Booming Cryptocurrency Market

The recent partnership is likely to expand Jack Henry’s exposure to the thriving cryptocurrency market.

The underlined market is witnessing significant growth of late owing to an urgency for transparency in financial payment systems and operational efficiency besides growing demand for remittances in the emerging geographies.

Additionally, financial institutions and banks are paying attention to the growing potential of this market. Thus, they are offering technology-driven cryptocurrency services to better serve their customers. This, in turn, will create growth opportunities for the cryptocurrency market.

According to a Vantage Market Research report, the global cryptocurrency market is expected to see a CAGR of 6.9% from 2022 to 2028.

Further, the market is likely to touch $1.9 billion by 2028, witnessing a CAGR of 11.1% between 2021 and 2028, per a Fortune Business Insights report.

Growing Collaborations

The latest collaboration bodes well for Jack Henry’s growing efforts toward strengthening its strategic alliances.

Recently, Jack Henry joined forces with North Jersey Federal Credit Union wherein the latter picked JKHY’s Symitar solution for hosting its core in the Jack Henry private cloud.

JKHY also partnered with the Bank of Burlington, RockPoint Bank and Moultrie Bank & Trust. Per the collaboration, the banks leverage Jack Henry’s technology platform to bring their financial services within the reach of the local communities.

Further, Jack Henry extended its relationship with Independent Financial. Per the terms, Independent Financial will leverage Jack Henry’s digital lending platform LoanVantage to automate commercial loans for the small and medium-sized businesses.

This apart, JKHY collaborated with the Old Missouri Bank, wherein the latter selected the banking system of the former called Banno Digital Platform besides digital lending, deposit and payment solutions to meet the growth plans as well as provide an enhanced experience to its customers.

Zacks Rank & Other Stocks to Consider

Currently, Jack Henry carries a Zacks Rank #2 (Buy). Investors interested in the broader technology sector can also consider some other top-ranked stocks like Avnet (AVT - Free Report) , Monolithic Power Systems (MPWR - Free Report) and MaxLinear (MXL - Free Report) . While Avnet and Monolithic Power Systems sport a Zacks Rank #1 (Strong Buy), MaxLinear carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet has gained 12.6% in the past year. The long-term earnings growth rate for AVT is currently projected at 37.2%.

Monolithic Power Systems has gained 34.9% in the past year. The long-term earnings growth rate for MPWR is currently projected at 25%.

MaxLinear has surged 31.4% in the past year. The long-term earnings growth rate for MXL is currently projected at 20%.